While these two companies are similar in many ways, Broadcom’s stock has significantly underperformed Skyworks’ over the past two years.

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Most of this underperformance can be attributed to management.

Broadcom was losing a ton of cash (about $2 million every day) on its cellular baseband segment. The major players in this space include technology behemoths Qualcomm (QCOM)and Intel (INTC).

Broadcom suffered intense pricing pressures, and it was always a generation behind Qualcomm and Intel in terms of technology.

As a result, this segment was a huge drag on the company for almost five years. Margins and earnings suffered, and its stock significantly underperformed its peers.

Finally, in July 2014, management threw in the towel.

Broadcom announced it would exit the baseband business and focus more on “connectivity.” This includes making chips that support Wi-Fi, Bluetooth, wireless charging and the wireless device market.

In short, Broadcom is following in Skyworks’ footsteps. It is becoming a near pure play on the IoT — an explosive trend that should last for decades.

Since Broadcom exited its baseband business, the company has finally started growing again. In fact, operating profit grew more than 20% year-over-year.

And this is just the beginning …

Broadcom has a huge pipeline of products coming to market. I’m sure they will make their way into every new product offered by existing customers including Apple, Samsung, Ericsson and Xiaomi — as well as its customers in the appliance, automotive, cloud, 4K television and smart home space.

Turning to the fundamentals, Broadcom is now generating over $1 billion in cash flow. Management plans to use this cash (as well as its $3 billion in cash on its balance sheet) to buy back $1 billion of its stock in 2015.

These purchases should put a floor under the stock, from which it could potentially run higher.

Broadcom also trades at just 14 times earnings. That’s a huge discount for a company that grew its earnings by more than 25% last quarter. Plus, at 14 times earnings Broadcom is trading at a 30% discount to its peers.

It’s not often you get a chance to buy a growth stock trading at a huge discount to its respective industry.

I expect this gap will close in the short term, as Broadcom is expected to report strong earnings growth for the foreseeable future.

If you followed my call to buy Skyworks, I suggest taking some money off the table and rolling those gains into Broadcom.

My research suggests the stock could double over the next 18 months as it becomes on pure play on the IoT, one of the biggest growth trends in technology.